specialty pharmacy's supply chain

How Growth in Shipping is Driving Specialty Pharmacy’s Focus on Supply Chains

In today’s high-growth specialty pharmacy segment, the supply chain should always be a priority.

From 2016 to 2021, specialty pharmacy drug spending surged 43% to reach a whopping $301 billion, putting more emphasis on drug distribution across the supply chain. The trend is expected to continue, with the U.S. Department of Health and Human Services anticipating an annual growth rate of 8% through 2025.

Because pharmacies are accountable for 100% of outbound logistics, it is critical to send shipments to the right place, at the right time, and do so cost-effectively.

The Importance of Visibility

Pharmacies often lack visibility into how to improve operational efficiency. In fact, distribution errors account for more than 5X the errors seen in the dispensing of prescriptions.

Without proper visibility, mishaps such as deliveries to the wrong address, delays, temperature control issues, and patient confusion can occur. Specialty pharmacies bear full responsibility for their outbound logistics, making visibility a paramount concern.

Fortunately, alternative distribution models can provide flexible invoice terms, create a robust warehouse network and delivery system, and offer timely support for new vendor processes and other customer compliance concerns. They can also improve efficiency in the return process.

The shift to at-home care coupled with the rapid pace of pharmacological innovation means there are more prescriptions to ship than ever. And patients are expecting an Amazon-like experience.

Gaining Supply Chain Visibility

TrajectRx, VPL’s Specialty Pharmacy Solution, empowers outpatient pharmacies by providing the cloud-based shipping, tracking, and compliance system needed to build stronger, smarter operations and:

  • Get scripts out the door
  • Track and trace them to their final destination
  • Communicate shipping updates to patients and staff
  • Compile necessary reporting and proof of delivery

Additionally, the dashboard provides actionable insights to inform budgeting decisions and drive operational improvements and service-level accuracy accountability.

For more information about how our software can help your pharmacy navigate the growth in specialty pharmacy, visit www.getvpl.com/pharmacy-solutions.